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LRE Lancashire Holdings Limited

586.00
-3.00 (-0.51%)
26 Apr 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Stock Type
Lancashire Holdings Limited LRE London Ordinary Share
  Price Change Price Change % Share Price Last Trade
-3.00 -0.51% 586.00 16:35:00
Open Price Low Price High Price Close Price Previous Close
580.00 580.00 597.00 586.00 589.00
more quote information »
Industry Sector
NONLIFE INSURANCE

Lancashire LRE Dividends History

Announcement Date Type Currency Dividend Amount Ex Date Record Date Payment Date
06/03/2024FinalGBP0.1209/05/202410/05/202407/06/2024
06/03/2024SpecialGBP0.3914/03/202415/03/202412/04/2024
09/11/2023SpecialGBP0.402316/11/202317/11/202315/12/2023
10/08/2023InterimGBP0.03931117/08/202318/08/202315/09/2023
10/02/2023FinalGBP0.0792804/05/202305/05/202302/06/2023
27/07/2022InterimGBP0.041204/08/202205/08/202202/09/2022
11/02/2022FinalGBP0.08199412/05/202213/05/202210/06/2022
28/07/2021InterimGBP0.03594505/08/202106/08/202103/09/2021
10/02/2021FinalGBP0.0718806/05/202107/05/202104/06/2021
29/07/2020InterimGBP0.03815513/08/202014/08/202011/09/2020
13/02/2020FinalGBP0.08117207/05/202011/05/202005/06/2020
25/07/2019InterimGBP0.0413508/08/201909/08/201906/09/2019

Top Dividend Posts

Top Posts
Posted at 26/3/2024 14:33 by feddie
Hopefully the Dali, the container ship that collided with a bridge in Baltimore (US) is not insured by LRE. The damage appears to be significant.
Posted at 14/3/2024 08:16 by cwa1
Ex the special dividend of 50 cents this morning with pay day being 12/4
Posted at 12/3/2024 08:25 by cwa1
Featured in the Questor column of The Telegraph today as a strong "hold"...

This insurer proved its mettle and its special dividends are investors’ reward
Questor share tip: Lancashire navigated low interest rates and natural disasters; now it can benefit from higher premiums as rivals drop out

Russ Mould
11 March 2024 • 8:00pm
Related Topics
Insurance industry, Share tips, Natural disasters

59
It really has to be good for this Yorkshireman to extol the virtues of anything to do with Lancashire but last week’s full-year results from Lancashire Holdings, the Lloyd’s of London syndicate manager, appear to more than justify our faith in the stock since our tip in May 2021.

We have needed plenty of patience, but the shares are trading at their highest level in more than three years.

Strong price increases, higher investment returns (thanks in part to higher bond yields) and skilled underwriting in its specialist areas of insuring (and reinsuring) across aviation, property, marine and energy are all turning into healthy profits at the manager of the Lloyd’s 2010 and 3010 syndicates.

Higher claims owing to natural disasters, higher repair costs thanks to inflation and higher costs of capital are all undeniable challenges for non-life insurers (and reinsurers) such as Lancashire.

But this combination is also taking capacity out of the insurance market at a time when demand is increasing. As a result, for those players strong enough and smart enough to withstand the storm, headline insurance rates are rising, and savvy specialists such as Lancashire are achieving rapid premium growth as a result.

Gross premiums written rose by 17pc in 2023, thanks to firm pricing and what chief executive Alex Maloney termed “the best market conditions we have seen for a decade”.

Meanwhile, natural disasters in America, New Zealand and Turkey have not led to losses of any great substance relative to the company’s capital base or book of business.

In 2023 net losses from catastrophe, weather and large loss events came to just $106m, down from $329m in 2022, when Hurricane Ian alone cost the company $181m.

This is all helping to boost the “combined ratio”, a key measure of profitability for the industry. A combined ratio of less than 100pc means the insurer is in profit and a figure above it means the insurer is in loss.

Higher interest rates, and costs of capital, have not just helped Lancashire by draining away supply from the market. They have driven up bond yields and provided the FTSE 250 company with a second tailwind in the form of higher returns on its $2.5bn investment portfolio.

As a result of all these trends, profits have surged once more. After two fallow storm-and-war-tossed years, Lancashire has just made its highest profits for a decade.

Consequently, the company is increasing its cash returns to shareholders. An increase in the final dividend to $0.15 from $0.10 in 2022, an interim dividend of $0.05 and two special dividends of $0.50 apiece take the total payment for 2023 to $1.15, or around 90p, enough for a 14.2pc yield at the current share price for anyone who bags all four payments.


This marks a return to form for Lancashire, which had last paid a special dividend in 2018. But even though profits may be at a decade high, the share price is around a quarter below its record level.

Perhaps this is because the dividend has yet to return to the record highs of more than a decade ago.

Perhaps it is because investors simply do not believe the company can continue to generate the profits it is making, and dividends it is paying, at a time of ever-growing concern over war in eastern Europe and the Middle East, increased tension between the West and China, not least over Taiwan, and climate change.

Yet Lancashire proved its skill during the very tough period of 2017-22 when interest rates were zero, investment returns minimal and catastrophe losses elevated.

The company negotiated all those challenges and has begun to reap the benefits as demand rises at a time of crimped capacity, thanks to those very same fallow years.

City analysts do expect further increases in profits, thanks to the growth in gross premiums written seen in the past two to three years, while the development of Lancashire’s American business is laying a path for further expansion.

Nor should it be forgotten that Lancashire was incorporated nineteen years ago when it seemed as if the catastrophe insurance market was on its knees, in the wake of Hurricanes Katrina, Rita and Wilma.

The decision to raise $1bn in capital and start to underwrite business paid off handsomely.

The company has since declared more than 900p a share in dividends, including the final and the second special announced alongside the 2023 results, a figure that exceeds the current share price, so its long-term record stands up well.

There is still much to like about Lancashire. Hold.

Questor says: hold

Ticker: LRE

Share price at close: 634p
Posted at 08/3/2024 15:50 by cwa1
Afternoon

Taken a punt on these at 625p. Have to concede it's not my area of expertise but the recent results SEEMED solid enough to my eyes and the yield on offer with the special dividend is nearly jaw dropping. Yes, I know, it's a special "one off" dividend but it's the second "one off" special in just a few months and if they keep on throwing off cash it shouldn't be the last one. They said this about 2024:-

Lancashire is always led by the underwriting opportunity. We believe there are
significant opportunities going into 2024 and we are well capitalised to be able
to fund these through existing resources and internal earnings growth.

...so fingers crossed. Clearly it can be a volatile business but perhaps they're in a sweet spot for the short/medium term at least?

I see the combined ratio has come in just shy of where brokers had been forecasting-but possibly not enough of a concern to have knocked the share price back as far as it has been?

XD for the special is next Thursday 14/3, with the final dividend being XD on 9/5.

Looks decent value to me...so what have I missed/what's the catch?

And...FWIW...the IC view:_

Lack of disasters helps underwriting
Big dividend increase in the pipeline
“The best market conditions we have seen in a decade,” was the emphatic verdict of Lancashire Holdings (LRE) chief executive Alex Maloney after the Bermuda-based specialist reinsurer delivered a thumping rise in profits. This allowed patient shareholders to be rewarded with a second special dividend of 50ยข a share (39p), along with a projected 50 per cent rise in the annual payment as the year progresses.

LRE:LSE
Lancashire Holdings Ltd

1mth
Today change
-1.95%Price (GBP)
628.00
The company, which participates in specialist Lloyd’s syndicates, rode that market’s buoyant growth, with Lancashire’s underwriting growth of 17 per cent in written premiums to £1.93bn reflecting the strength of the underlying market conditions.

That was combined with largely negligible losses for the year – the group’s total net loss was just $106mn (£83mn) with none of these material for the company, or roughly a third of the total for 2022; a quiet hurricane season led to few large loss events and consequently helped to drive the profitability on underwriting. The results were also helped by a net 94 per cent increase in Lancashire’s income from investments, which when unrealised gains and losses are stripped out, totalled $108mn.

It should be noted that Lancashire will pay the special dividend on 12 April, with an ex-dividend date of 14 March, which is different from the annual payment date.

Broker Peel Hunt said the shares are currently valued at 1.4 times tangible net assets for 2024, with the planned launch of the US insurance business likely to boost the company’s property book. The broker values the shares at a current price/earnings ratio of 8 for this year.

It is hard to argue with the fundamentals, especially with an indicative dividend yield of 8.8 per cent, when the special dividend is included, acting as a risk premium. Buy.

Last IC view: Buy, 593p, 10 Aug 2023
Posted at 06/3/2024 08:32 by feddie
Not clear why the share price is lower this morning. Was there an expectation of a larger special dividend? Was it a disappointment that the $50m buyback was not completed? No idea.
Posted at 09/11/2023 10:43 by speedsgh
"Lancashire’s Board of Directors has declared a special dividend of $0.50 per common share (approximately £0.41 per common share at the current exchange rate), which will result in an aggregate payment of approximately $119 million."

41p / 657.5p = 6.2%
Posted at 09/11/2023 10:37 by buoycat
By my reckoning at today's market cap, a special dividend if £119 million is a payout of 8.4%!
Posted at 09/11/2023 08:44 by csalvage
Lovely special dividend
Posted at 11/8/2023 16:18 by km18
Lancashire Holdings Plc posted solid HY23 Results earlier this week. Gross premiums written increased by 26.2% to $1,184 million, insurance revenue was up to $720.9 million from $579.8m. Profit after tax reached $159.2 million up from $31m a year ago. The combined ratio dipped to 71.4% while net investment returns moved back into positive territory at +2.2%. An interim dividend of $0.05 per share was also announced. Valuation looks very attractive with forward PE ratio at 5.9x top quartile for the Insurance market. The share price has been drifting sideways for nearly a year now and lacks some positive momentum accordingly. Other than that, there is a lot to like and LRE looks well worth buying for the longer run, although there is no particular rush here...

...from WealthOracle
Posted at 13/6/2023 10:24 by buoycat
Dividend just received. Stated as an overseas dividend payment. Maybe that's the reason for the delay?

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